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URAR, Top Of Page 2

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Current market data reflects current market conditions. See data.
 
Page 1 neighborhood, and top of page 2 of the URAR must be consistent with the 1004MC. Announcement SEL-2010-09.

https://www.fanniemae.com/content/announcement/sel1009.pdf


If there are zero comps, their price range is zero to zero,


When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report forms, the trends
must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section. However, when a segmented or bifurcated market is present, the One-Unit Housing Trends portion must reflect those properties from the same segment of the market as the property being appraised. This ensures that the analysis being performed is based on competitive properties.

For example
if the neighborhood contains a mix of property types not considered competitive by market participants, then a segmented or bifurcated market is present. Additionally, the conclusions reported in this portion of the appraisal will be supported by the analysis contained in the Market Conditions Addendum to the Appraisal Report (Form 1004MC)

the appraiser should also provide commentary on the other segment(s) of the neighborhood when segmentation is present.
Market Conditions Addendum to the Appraisal Report (Form 1004MC)
The lender must confirm that current market conditions are identified and analyzed in the valuation process and described
in the appraisal report.

Form 1004MC is required for all mortgage loans delivered to Fannie Mae with appraisals of one- to four-unit properties. It is
intended to provide the lender with a clear and accurate understanding of the market trends and conditions prevalent in the
subject neighborhood. The conclusions regarding trends that are obtained from the 1004MC Form must be reported in the
Neighborhood section of the report form.

In situations when there is not sufficient data to provide a meaningful analysis for the defined neighborhood, the form must be completed based on the information available, and an explanation must be provided. The lack of data may be an indication of the market conditions. If additional analysis of nearby areas that include competitive properties is performed, it mustbe discussed in the summary/conclusions section of the form. In any scenario, the Neighborhood section of the appraisal report must include the appraiser’s conclusions regarding the housing trends.For additional information concerning Form 1004MC, see B4-1.2-01, Appraisal Report Forms and Exhibits (04/15/2014)
https://www.fanniemae.com/content/guide/sel050118.pdf

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marion, to be clear are you saying p1, p2 and 1004mc should all be the same?
 
marion, to be clear are you saying p1, p2 and 1004mc should all be the same?
From my link you can read the Fannie Mae selling guide which details what Fannie wants in each section of the URAR and the 1004mc
 
From my link you can read the Fannie Mae selling guide which details what Fannie wants in each section of the URAR and the 1004mc

i know, i asked because i dont see it.
 
This is impossible to answer from my cell phone. When I get back i’ll COpy and paste it to you
 
but marion just posted that FNMA says all data (p1, p2 and 1004mc) must match. arent you saying something different?
"Therefore, the 1004MC says that we need to expand our search parameters so that we can give a supported opinion when we check the trend boxes. What that means: you will have to expand the 1004MC to your additional comments where you show graphs, interviews, stats, etc to support your trend boxes that you checked."

This passage is confusing....
If this instruction is on the form, I can't find it....
The data on the left side of the MC must match the top of page 2. The trend box on the MC must match the trend boxes on pg 1.
However, the data on the MC, does not have to match the trend box. On the MC it states "If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation."...and that is often the case for truly comparable comps in the immediate neighborhood. There isn't enough data to show a reliable analysis of trends. Therefore, you need to do additional analyses and research to support the actual trends happening. (don't change the data on the MC though) You show that research in an additional comments page to support your opinion of trends.
 
marion, to be clear are you saying p1, p2 and 1004mc should all be the same?

Market Conditions Addendum to the Appraisal Report
(Form 1004MC)
In Form 1004MC, in order to provide the most accurate depiction of the “Months of Housing
Supply” as of the effective date of the appraisal, the “Total # of Comparable Active Listings”
should be based on a specific point in time. For example, when completing the “Current – 3
Months” column for “Total # of Comparable Active Listings,” the number should reflect the
listings on the most recent date in the 3-month period (which is also the effective date of the
appraisal), and not the cumulative number of listings for the entire 3-month time period. Then,
when completing the “Months of Housing Supply,” the number for the “Total # of Comparable
Active Listings” is divided by the absorption rate, which provides an accurate depiction of the
existing housing stock as of the effective date of the appraisal. (Using a cumulative number of
listings during the “Current – 3 Month” time period may result in an artificially high number for
the “Months of Housing Supply.”)
If data is available for the previous time periods, such as “Prior 4 - 6 Months” and “Prior 7 - 12
Months,” the “Total # of Comparable Active Listings” should be based on the most recent day in
each of those time periods. For example, in the “Prior 4 – 6 Months” column, the “Total # of
Comparable Active Listings” should reflect the listings on the last (most recent) day in that time
period
. Likewise, in the “Prior 7 – 12 Months,” the “Total # of Comparable Active Listings” should
reflect the listings on the last (most recent) day in that time period.
https://www.fanniemae.com/content/announcement/sel1009.pdf

upload_2018-6-1_7-18-11.png

Top of page 2 is the same info as 1004mc, because it is the same 2 questions.


Here's Danny Wiley's printed booklet on the matter. (cheap plug to acknowledge Danny's writing).

.https://r.search.yahoo.com/_ylt=A9F...V1.0.pdf/RK=2/RS=ztfRk0BTQaTRXEV3mAYF_mvEOLk-

Now Page 1

Part B, Origination Through Closing
Subpart B4, Underwriting Property
Chapter B4-1, Appraisal Requirements
Section B4-1.3, Appraisal Report Assessment
Page 555 et seq of the selling Guide.

https://www.fanniemae.com/content/guide/sel050118.pdf

When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report forms, the trends
must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly
competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section. However, when a segmented or bifurcated market is present, the One-Unit Housing Trends portion must reflect those properties from the same segment of the market as the property being appraised. This ensures that the analysis being performed is based on competitive properties. For example, if the neighborhood contains a mix of property types not considered competitive by market
participants, then a segmented or bifurcated market is present. Additionally, the conclusions reported in this portion of the appraisal will be supported by the analysis contained in the Market Conditions Addendum to the Appraisal Report(Form1004MC). The appraiser should also provide commentary on the other segment(s) of the neighborhood when segmentation is present.


But being it was the regulation in effect for 4 years now, and you are doing more volume of work than anyone else posting here, I'm wondering how come your reports aren't getting kicked back for corrections, if you did not know this?

.
 
http://www.workingre.com/are-you-committing-appraisal-fraud/

I am curious about what other appraisers think of the author's argument that he presents in Scenario One. I have an assignment in my queue right now where there are no sales in the neighborhood, which has not happened to me on a residential assignment yet.

If you have one (1) sale at $100,000, wouldn't the scale be from $100,000 to $100,000? And, if you had a sale at $100,000 and another at $125,000, then the scale would run from $100,000 to $125,000. And so on. Why would the logic change if there are zero sales in the neighborhood?

What I'm inferring from this article is that the scale at the top of page 2 reflects whatever subjective criteria the appraiser may have used to delineate his or her market segment in that neighborhood (i.e., $1,000 to $100,000 in the WorkingRE article).

TLDR- if there are zero sales in a neighborhood, why would you not define the resulting price scale as an empty data set?


OK...I have not read the many posts in this thread. This understood, the data that goes to very top of page 2 of the URAR are COMPARABLE properties and NOT mere sales within the neighborhood. This, per Fannie Mae.
 
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